UK Software Industry

Mike Weatherley Excerpts

Wednesday 10th November 2010 Westminster Hall

[Mike Weatherley (Hove) (Con)]

I congratulate the hon. Member for Houghton and Sunderland South (Bridget Phillipson) on securing this debate.

The Government have made a number of announcements in the past weeks emphasising the importance of innovation to the UK economy. In particular, I welcome the Prime Minister’s “Blueprint for Technology” and the specific measures set out to support technology-based innovation. The UK software industry is at the heart of such innovation, and none more so than the video games and interactive entertainment industry.

The UK video games industry—the fastest-growing creative industry in Britain—is one of the biggest in the world. More video games than ever before are being played on an ever-growing range of platforms: consoles, online, mobile phones and interactive TV, to name a few. One in three voters consider themselves gamers. My hon. Friend the Member for Southport (Dr Pugh) mentioned his preferred game; mine is “Command and Conquer: Red Alert 2”.

A large part of the industry’s strength lies in its development of original intellectual property. The UK video games industry excels in innovation and research and development. It is anticipated that the growth in mobile and online gaming in particular will provide new opportunities for original IP development. Sussex is home to a number of content creators and digital media companies, poised to play their part in the UK’s economic recovery. In my constituency—Hove and Portslade—and in the wider Brighton and Hove area, companies such as Black Rock Studios, NCsoft, Eurogamer and Futurlab are meeting demand from a thriving home and export market.

Government support is needed to ensure that the UK remains at the forefront of this thriving industry and to ensure that it continues to grow. IP protection is crucial in that regard. I am sure that I do not have to remind hon. Members of the importance of intellectual property rights, particularly in the online space. I welcome, and I hope other hon. Members do, the Government’s commitment to IP and the Gowers report, and to pursuing infringers through the Digital Economy Act 2010, although it is not perfect in respect of the appeals procedure. It is right that the Government continue this good work, making the IP framework more conducive to innovation.

As the Prime Minister reflected this week, IP is not just about protecting the end result; it is also about ensuring originality in creation. Will the hon. Lady join me in welcoming innovations in the video games sector that are allowing the UK to harness its talents and exploit its advantage? For example, the university of Abertay Dundee, is achieving great things with Government support. With support from the Department for Business, Innovation and Skills and from the European regional development fund, Abertay university is establishing a video games centre of excellence and a prototyping fund, allowing small games developers throughout the UK to apply for grants of up to £25,000 to support the development of fully working prototypes.

[Jim McGovern]

When will a member of the coalition Government visit Abertay university?

[Jim McGovern]

The Secretary of State for Scotland has visited, but no Conservative Member has done so.

[Mike Weatherley]

I thank the Minister for his intervention.

Commercialisation and project management support will also be provided from Abertay’s business and computer games experts, giving each successful applicant the best chance of establishing or developing a thriving business. The spill-over effects into other areas are plain. For example, talented students and graduates will gain important work experience opportunities on project teams, working in the same studio environment as computer games companies. Overall the project can be described as a pipeline for the creation of new intellectual property and it is expected to stimulate the economy by attracting private sector investment.

Similarly, a partnership between Cardiff schools of creative and cultural industries at the university of Glamorgan and Swansea Metropolitan university will support companies holding creative IP in exploiting that resource through identifying routes to market and developing capacity. The DigiLab will ensure that games prototypes for further investment are generated, and that subsequent end products reach the key games publishers quickly to the benefit of participating companies and sponsors.

I call on hon. Members to support those and other initiatives, which are providing crucial commercial and intellectual partnerships to spur innovation and sustain a sector that is at the heart of our economic recovery. I welcome recent announcements about the Government’s intention to establish technology and innovation centres and to use Intellectual Property Office savings to support UK business, helping companies to develop new technologies and offer advice in developing their intellectual property. I look forward to seeing how those projects develop in the coming months.

Finally, the Government have signalled that they will consult business later this autumn on the taxation of IP, and the support that research and development tax credits provide for innovation. That area is of vital importance to the software industry, and I urge my hon. Friends to engage with industry bodies such as the Association for UK Interactive Entertainment, and provide a framework for the industry to flourish.